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From Isaac Anumihe, Abuja
Nigeria’s electricity distribution companies (DisCos) collected energy worth N854.53 billion in the third quarter of 2025.
The Nigerian Electricity Regulatory Commission (NERC), which disclosed this in a report, lamented that significant revenue leakages remain a challenge.
According to NERC’s latest quarterly report, total energy billed during the period was N706.61 billion, translating to a billing efficiency (BE) of 82.69 per cent. This marks a modest improvement of 1.08 percentage points from 81.61 per cent in Q2.
Despite the gains, DisCos cumulatively recorded billing losses of N147.92 billion during the quarter. On collection efficiency (CE), NERC noted that only N570.25 billion of the billed amount was actually collected, representing 80.70 per cent, up 4.63 percentage points from Q2’s 76.07 per cent.
“This translates to a collection efficiency of 80.70 per cent, representing an increase of 4.63pp compared to 2025/Q2,” the report said.
The regulator highlighted the Aggregate Technical, Commercial, and Collection (ATC&C) loss, a key indicator of operational inefficiency, at 33.27 per cent. This includes technical and commercial losses of 17.31 per cent and collection losses of 19.30 per cent.
“The ATC&C loss of 33.27 per cent is 12.73pp higher than the 2025 Multi-Year Tariff Order (MYTO) target of 20.54 per cent, translating to a cumulative revenue loss of N108.753 billion across all DisCos,” the report revealed. While the ATC&C loss fell by 4.65pp from Q2 (37.92 per cent), only Eko and Ikeja DisCos met their target, with Kaduna DisCo performing worst, registering an ATC&C loss of 71.10 per cent against a target of 21.32 per cent.
The report also noted that cumulative upstream invoices payable by DisCos in Q3 2025 stood at N400.48 billion, accounting for 16 per cent of their gross allowable revenues over the period.
NERC’s data highlights the dual challenge facing Nigeria’s power sector: improving billing and collection efficiency while tackling systemic technical and commercial losses. As the regulator pushes for better performance, the figures suggest that while progress is being made, a significant portion of potential revenue continues to slip through the cracks.
